Header bidding, also known as pre-bidding is a programmatic process that allows the publishers to collect several bids from multiple demand sources. This shows the value of the bid and its demand sources which allows them to achieve the maximum cost per CPM.
It is beneficial to the advertisers as they get a better chance to win. The publishers, on the other hand, earn better yields for their inventory. There are two kinds of header bidding: client-side header bidding and the server-side header bidding.
Client-Side Header Bidding:
Via SSPs the bids start entering from DSPs, allowing the highest bidder to win the auction. Now that, we are clear with, what is header bidding on the client-side; its advantages are stated below.
As it is a real-time competition, it allows vendors from both the demand and supply side to make an easy synchronization of their cookies throughout the enter process. This improves the cookie matching, which further offers the advertisers to identify the users more efficiently to retarget them to produce additional revenues.
One of the significant advantages of the client-side header bidding is transparency. This transparency increases the openness of the bidding towards the users. It allows accessibility of consistent reporting for the publishers in order to take a much deeper look into the insights, which includes clearing prices and the demand sources.
Unlike the server-side bidding, the kinks of the client-side bidding are ironed out well, which allows several advertisers and publishers to implement it. This bidding is still maintaining the industry standard and is upgrading dynamically behind offering several advantages.
Server-Side Header Bidding:
Now, as compared to the client-side header bidding, server-side header bidding is a newer concept. A central server sends the requests, and this allows the publishers to enjoy the full benefit from it. The advantages are as follows:
Better for rich media-
The user experience is far better when it comes to watching videos, as the loading is much faster. To display ads on Over-the-top or OTT devices, implementation of server-side header bidding is the only way as these kinds of devices are not open-ended.
The technical setup of server-side header bidding is very much easier, compared to that of client-side header bidding. To get the work done, you will need to ask your provider to activate or deactivate the demand sources as per your requirements.
Increment in-demand partners-
This type of header bidding will allow the publisher to send bid requests as many as he or she wants. This will maximize the fill rates, and the ad yield will turn better for both publishers and advertisers.
Both server-side and client-side header bidding offers multiple benefits, but it fully depends on the advertisers and publishers which one to choose. Before taking a decision, he or she must be clear about the inventory type, the ongoing marketing trends, demand, and supply.
Both the implementation types can be tested by the publishers and the advertisers to check, which type is generating fruitful revenue in the long run.